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Thursday, April 10, 2008
Gov't mulls removing NFA rice from public markets
MANILA -- A day after the National Food Authority (NFA) admitted that it is studying the possible increase in the prices of the government-subsidize rice, President Gloria Macapagal-Arroyo announced that they are now considering to pull out the P18.25 NFA rice from the public markets and sell it instead in non-traditional outlets like churches and mosques.
Arroyo, at the Local Peace and Security Assembly in Bangued, Abra, said the proposal aims to deter hoarding and diversion of NFA supplies.
The President said with the good quality of NFA rice it is now passable as commercial rice, prompting some erring NFA officials, in connivance with unscrupulous traders, to divert the government-subsidize grain and sell it as a commercial grade grain for a higher price.
She said the government had caught some of these NFA employees which is why they now consider directly releasing or selling it in the depressed communities with the help of the local churches and the local government units (LGUs).
"That's why we are toying with the idea of stopping the release of NFA rice through the public markets. The temptation to divert has become too big as well and that's why we are seeking the help of the LGUs and the church-based communities to help with that identification where to put the cheaper rice," she said.
Arroyo said the tapping of the non-traditional outlets is part of the government's three-phase action plan to ensure food particularly rice security in the country. The action plan includes securing the supply, ensuring proper distribution, and guaranteeing enforcement of prices to protect our people.
Press Secretary Ignacio Bunye said these erring persons "be they government officials or private citizens" would be arrested and meted the appropriate penalties or "taking advantage of the situation."
Bunye also defended the rice distribution through churches and other areas, which he said is aimed at ensuring that those who really need it are able to avail of the subsidized rice.
He said some parishes have already started assisting the NFA in the rice distribution last Wednesday.
"The idea is really to spread out the benefits to those who really deserve the assistance because NFA rice is being subsidized at this time so we want to make sure that those who are really in need are the ones who benefit most from this set-up," he said, questioning the reason of some religious leaders who criticize the partnership of the government with the church in the rice distribution.
He said church leaders like Lingayen-Dagupan Archbishop Oscar Cruz should be happy instead of objecting to such partnership since the church's goal is to help the poor. He said this is realized through this partnership.
Bunye denied that the pullout of the NFA rice from the public markets to be sold in non-traditional outlets is intended to prevent the public access to the NFA rice which is sold by the agency at lower than commercial rates.
"You know we cannot satisfy everybody. It just so happens that we have to adopt some system, we have to adopt some sort of screening because the idea is to make available the subsidized rice to those who need the commodity the most," he said.
The regular NFA rice is sold at P18.25 per kilo while the high grade and other varieties of NFA rice are sold from P22 to P25 per kilo. The NFA announced Wednesday that it is now studying possibility of raising their prices after the agency incurred huge amount of losses just to keep the NFA rice prices down.
Bunye said the proposed price increase is still being studied and the NFA would be conducting consultations with the different stakeholders before deciding whether to push through with it or to hold it in abeyance.
He added that despite the rice situation, where the government is subsidizing up to P50 billion a year just to keep the prices of NFA rice affordable, the government would continue to aim for a balanced budget this year "but at the same time frontloading some of our expenditures."
"We have to balance so many things. But in the end I believe given the present circumstances, we can still go for aiming for a balance budget," he said.
Bunye also expressed confidence that the "rice situation" in other countries like Haiti, Egypt and Uzbekistan where riots have already erupted due to the high prices and limited supply would occur in the Philippines.
"Filipinos are more calm," he said adding that, personally, he is open to idea of subscribing to other staples whether corn, potato or the like.
He said some Filipinos are already doing that when they eat outside their homes where they sometimes take in mash potatoes or other side dishes in their meals.
He also assured that the Department of Trade and Industry is doing all it can to prevent price gouging and at the same time ensure that the basic food supply like pandesal (salt bread) and commodities remains available and affordable.
Deputy presidential spokesperson Anthony Golez added that the National Price Council has been in constant dialogue with Vice President Noli de Castro and Trade Secretary Peter Favila to ensure that prices remain stable. (Sunnex) |
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